How Will Earnings Effect Top Pot Stocks In August?
With upcoming earnings, the best marijuana stocks to buy may have some upside soon. Leading cannabis companies are scheduled to report earnings, and this could be a catalyst for the cannabis sector. As it stands US cannabis companies have delivered strong earnings to start 2021 and many analysts believe this could continue into this round of financials. Despite the challenges of cannabis not being federally legal the cannabis industry continues to grow and expand.
At the present time, 18 states have made marijuana legal for adults and 37 states have medical cannabis legalized. The growing market seems to be doing well under the current situation and there are many ways to gain exposure to the developing cannabis market. Besides investing in top US marijuana stocks like Green Thumb Industries Inc. (OTC:GTBIF) or Trulieve Cannabis Corp. (OTC:TCNNF) some investors are finding value in other areas of the market.
Specifically, ancillary cannabis companies have performed well as the marijuana industry expands. Ancillary companies are those that support the cannabis market without touching the actual cannabis plant. In 2020 some of the top cannabis stocks to invest in like GrowGeneration Corp. (NASDAQ:GRWG) continue to expand their footprint across the US. Currently, the company owns and operates 58 retail hydroponic and gardening centers across 12 states.
Top Marijuana Stocks And Cannabis ETFs in Q3 2021
Another area investors are finding value in is cannabis ETFs. For those not familiar with ETFs or exchange-traded funds this is a type of security that tracks an index, sector, commodity, or other assets. ETFs are like mutual funds except they can be purchased on the stock exchange like a regular stock. Marijuana ETFs are a way to gain exposure to a broader area of the cannabis sector. Rather than investing in one company traders can gain access to the area of the cannabis market the ETF holds assets of.
[Read More] 5 Top Ancillary Cannabis Stocks In 2021
With this in mind, we can take a closer look at some top pot stocks to watch before August. For several months these cannabis stocks have been trading lower in the market and could have some upside for investors. Now in July, we have seen further downside in the cannabis sector but that could change with earnings. For this reason, let’s take a closer look at 2 top marijuana stocks to add to your watchlist this week.
Top Marijuana Stocks To Watch Right Now
WM Technology, Inc. (NASDAQ:MAPS)
ETF Managers Trust – ETFMG Alternative Harvest ETF (NYSEArca:MJ)
WM Technology, Inc.
WM Technology, Inc. or Weedmaps is an online listing marketplace for cannabis consumers and cannabis companies. Before going public the company built one of the largest online markets for connecting cannabis companies to new consumers. WMH holdings were valued at having an estimated $160 million in revenue in 2020. With a current market cap of $1.807 billion Weedmaps continues to be a major online hub for cannabis consumers. With the massive growth in the cannabis industry Weedmaps is also building its SAAS platform and has given revenue guidance for 2021 of $205 million. The company’s SaaS platform provides consumers with information regarding cannabis products, including online ordering, local retailer and brand listings, product discovery, and consumer education on cannabis and its history, uses, and legal status. In addition, WM Technology also provides a point of sale, logistics, wholesale, and order solutions.
Currently, Weedmaps has an estimated 10 million monthly active users and approximately 18,000 business listings in the U.S. The company’s client base includes over 55% of holders of retail licenses in all cannabis markets. As more cannabis sales move to online pickups and deliveries Weedmaps presents an interesting way to invest in the cannabis market. Weedmaps is expected to release earnings on August 12th after the market close.
MAPS stock closed on July 26th at $13.98 up 9.48% year to date. In the past six months MAPS stock has declined by 34.49% and has a 52-week range of $9.99-$29.50. The stock is up 38.01% for its 1-year performance could perform better with strong earnings. As the US cannabis market continues to expand MAPS stock could be a top marijuana stock to add to your list before August.
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ETFMG Alternative Harvest ETF (MJ)
One of the first and largest ETFs to target the cannabis market is MJ ETF with net assets of $1.71 billion. MJ remains the largest cannabis ETF in the world and the first and only U.S.-listed ETF to target the global cannabis industry directly. Primarily, the fund provides investors exposure to areas of the cannabis sector which continues to see medicinal advancements, regulatory changes, and M&A activity. Some investors prefer ETFs specifically highlighting the long-term investment opportunity in the industry.
Alternative Harvest ETF major assets are in holdings from top Canadian cannabis companies like Tilray, Inc. (NASDAQ:TLRY), Canopy Growth Corporation (NASDAQ:CGC), and GrowGeneration Corp. (GRWG). As an incentive for the long-term investor MJ ETF has a dividend with an estimated 2.03% dividend yield. With a dividend, MJ ETF becomes a much more attractive long-term hold in the cannabis sector.
MJ ETF closed on July 26th at $13.98 up 24.25% year to date. In the past month, MJ ETF is down by 14.28% and has a 52-week range of $10.12-$34.58. According to analysts at Wallet Investor, MJ ETF has a 1-year price forecast of $24.427. This would represent an increase of 74.72% from its current trading price of $13.98. For this reason, MJ ETF could be one of the best ways to invest in the cannabis market in 2021.
[Read More] Top Marijuana ETFs In Q2 2021
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